SIA profits surge 78%

<p>SIA has seen its profits surge by 78 per cent in the second quarter of 2013.</p>

Singapore Airlines (SIA) has seen its net profits increase by 78 per cent during the second quarter of 2013.

During the six months to September 30th, the group saw its net profits reach $128.6 million (£80.9 million).

SIA said that the reason for the jump in profits was due to selling airlines and gaining a higher share of revenue from associated and joint venture companies. Among the sales it made gains on was its stake of Virgin Atlantic to Delta Airlines.

However, the company is facing tough competition on its medium and long haul routes from other Asian airlines, such as Emirates Airline, Malaysian Airline System Bhd and Cathay Pacific Airways Ltd.

Premium-class travel has been hit by cuts in business travel spend as companies turn to budget airlines such as AirAsia Bhd and Lion Air.

Additionally, a rising Singaporean dollar has impacted on yields as well as its promotional activities.

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